MIRA INFORM REPORT
|
Report Date : |
26.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUNFLAG IRON AND STEEL COMPANY LIMITED |
|
|
|
|
Registered
Office : |
33, Mount Road, Sadar, Nagpur – 440001, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
12.09.1984 |
|
|
|
|
Com. Reg. No.: |
11-034003 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1622.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27100MH1984PLC034003 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NGPS06339E / NGPS02039C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCS3376C |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
Line of Business
: |
Manufacturing and Sale of Special Steel Rolled Products. |
|
|
|
|
No. of Employees
: |
1400 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 19262000 |
|
|
|
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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|
Comments : |
Subject is an established company having satisfactory track record. The company has incurred a loss during financial year 2013 however net
worth of the company is satisfactory. The rating also takes into account the long track record of the
company in manufacturing of mild steel and alloy steel products, experienced
management and established position in the alloy steel industry. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitment. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India’s current account deficit for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product
from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in
exports and moderation in gold imports. Manufacturing activity and new orders
in India showed their strongest growth in a year in February. The news comes as
a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the public
to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000
denominations, pushing the deadline to January 1, 2015. A day before dates for
the Lok Sabha polls were announced, the government decided to hike interest
rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The
new rates will be effective April, 1. The Supreme Court will resume hearing on
March, 11 Nokia’s appeal against a ruling over transferring ownership of its
local mobile phones plant which is the subject of a tax dispute to Microsoft
Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities BBB+ |
|
Rating Explanation |
Moderate degree of safety. It carry moderate
credit risk. |
|
Date |
October 9, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short – term bank facilities A2 |
|
Rating Explanation |
Strong degree of safety. It carry very low
credit risk. |
|
Date |
October 9, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Mahadevan |
|
Designation : |
General Manager |
|
Contact No.: |
91-7122524661 |
|
Date : |
25.03.2014 |
LOCATIONS
|
Registered / Head / Regional Office : |
33, Mount Road, Sadar, Nagpur – 440001, Maharashtra, India |
|
Tel. No.: |
91-712-2524661/ 2520356/ 57/ 58/ 2532901 |
|
Fax No.: |
91-712-2520360 |
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E-Mail : |
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|
Website : |
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Factory : |
Bhandara Road, District Bhandara – 441905, Maharashtra, India |
|
Tel. No.: |
91-7197-285551 to 285555 |
|
Fax No.: |
91-7184-285570/ 285740 |
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Warehouses : |
Located at : Ø Kolkata Ø Chennai Ø Delhi Ø Faridabad Ø Ludhiana Ø Bangalore Ø Kanpur Ø Madurai Ø Jaipur Ø Bhiwadi Ø Mumbai |
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|
|
|
Branch Offices : |
Located at : Ø
Delhi Ø
Indore Ø
Bangalore |
|
|
|
|
Regional Office 1 : |
C/O Themco Private Limited, 8-B. T. Road, Belgharia, Kolkata – 700056,
West Bengal, India |
|
Tel No. : |
91-33-25442429/ 25442430 |
|
Fax No. : |
91-33-25442431 |
|
|
|
|
Regional Office 2 : |
Plot No. 12, Sector – 6,
Mathura Road, Faridabad- 121006, Haryana, India |
|
Tel. No.: |
91-129-4290801-08/ 4290887/ 4290888 |
|
Fax No.: |
91-129-4061646 |
|
|
|
|
Regional
Office 3 : |
705, 7th Floor, Challa Mall, 11 / 11A, Sir
Thiagaraya Road, T. Nagar, Chennai - 600017, Tamilnadu, India |
|
Tel. No.: |
91-44-24341065/ 24342262/
24342263/ 24323724 |
|
Fax No.: |
91-44-24347649 |
|
|
|
|
Regional Office
4 : |
Office No. 65-69, Fifth Floor, 'Sai Kripa Bhavan', Pune -
Mumbai Highway, Opposite KSB Pumps, S No 5743, Kharalwadi, Pimpri
District Pune – 411018, Maharashtra, India |
|
Tel. No.: |
91-20-32940427/ 27425607/
27424685 |
|
Fax No.: |
91-20-27423013 |
|
|
|
|
Regional Office
5 : |
307, Hamilton-B, Hiranandani Business Park, Ghodbunder
Road, Thane (West) - 400607,
Maharashtra, India |
|
Tel. No.: |
91-22-25862294/ 95/ 96/
25861928 |
|
Fax No.: |
91-22-25861931 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. P. B. Bhardwaj |
|
Designation : |
Chairman cum Managing Director |
|
|
|
|
Name : |
Mr. Ravi Bhushan Bhardwaj |
|
Designation : |
Vice Chairman and Managing Director |
|
Date of Birth/ Age : |
70 Years |
|
Experiences : |
48 Years |
|
|
|
|
Name : |
Mr. Pranav Bhardwaj |
|
Designation : |
Joint Managing Director |
|
Date of Birth/ Age : |
39 Years |
|
Qualification : |
B. Sc |
|
Experiences : |
18 Years |
|
|
|
|
Name : |
Dr. E. R. C. Shekar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S Gajendran |
|
Designation : |
Director |
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|
|
|
Name : |
CA Jayesh Madhavji Parmar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. B.W. Ramteke |
|
Designation : |
Director (Effective 28th May 2012) Nominee - IDBI Bank Limited |
|
|
|
|
Name : |
Mr. Surendra Kumar Gupta |
|
Designation : |
Director and CEO |
|
Date of Birth/ Age : |
65 Years |
|
Qualification : |
B. E. (Mechanical) and Holding Diploma in Business Management |
|
Experiences : |
35 Years |
KEY EXECUTIVES
|
Name : |
CA R. Muralidhar |
|
Designation : |
Chief Financial Officer - Executive Director (Finance) |
|
|
|
|
Name : |
Mr. Mukesh D. Parakh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
1612140 |
0.99 |
|
|
8333356 |
5.14 |
|
|
9945496 |
6.13 |
|
|
|
|
|
|
13217398 |
8.15 |
|
|
65253582 |
40.23 |
|
|
78470980 |
48.38 |
|
Total shareholding of Promoter and Promoter Group (A) |
88416476 |
54.51 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
88000 |
0.05 |
|
|
89870 |
0.06 |
|
|
1100 |
0.00 |
|
|
50000 |
0.03 |
|
|
228970 |
0.14 |
|
|
|
|
|
|
11667637 |
7.19 |
|
|
|
|
|
|
27809366 |
17.15 |
|
|
33313814 |
20.54 |
|
|
761240 |
0.47 |
|
|
535594 |
0.33 |
|
|
224441 |
0.14 |
|
|
1105 |
0.00 |
|
|
100 |
0.00 |
|
|
73552057 |
45.35 |
|
Total Public shareholding (B) |
73781027 |
45.49 |
|
Total (A)+(B) |
162197503 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
162197503 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Sale of Special Steel Rolled Products. |
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Products : |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing
: |
L/C, Cash, Advance Payent and Credit |
GENERAL INFORMATION
|
No. of Employees : |
1400 (Approximately) |
||||||||||||||||||||||||
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|
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|
Bankers : |
Ø
State Bank of India Ø
Bank of India Ø
Canara Bank Ø
Indian Bank Ø
State Bank of Bikaner and Jaipur Ø IDBI Bank
Limited |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Facilities : |
NOTE: LONG TERM
BORROWINGS
@ The Unsecured
loans comprising interest free loans given by Promoters. There is no
stipulation as to the repayment hence there is no default in repayment during
the period. # The Unsecured loan
comprising interest free Sales Tax Loan. The repayment of the Sales Tax loan
is made as per the schedule and there is no default in repayment during the
period. SHORT TERM
BORROWINGS
ii.
The Company has not defaulted in either repayment
of principle or interest during the year. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Patel, Shah and Joshi Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
G. R. Paliwal and Company Cost Accountants |
|
Address : |
Nagpur, Maharashtra, India |
|
|
|
|
Associate Enterprise : |
Ø Haryana
Television Limited Ø Ridge Farm
Developers (Private) Limited |
|
|
|
|
Joint Venture Companies : |
Ø Madanpur (North)
Coal Company Private Limited Ø C T Mining
Private Limited Ø Gujarat State Mining
and Resources Corporation Limited |
|
|
|
|
Subsidiary Companies : |
Ø Sunflag Power
Limited Ø Sunflag Special
Steels Limited Ø Khappa Coal
Company Private Limited |
|
|
|
|
Enterprise which have significant influence : |
Ø Sunflag Limited,
Channel Island, UK |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4000000 |
10% Cumulative Preference Shares |
Rs.100/- each |
Rs.400.000 Millions |
|
165000000 |
Equity Shares |
Rs.10/- each |
Rs.1650.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 2050.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
162197503 |
Equity Shares |
Rs.10/- each |
Rs.1622.000 Millions |
|
|
|
|
|
After 25.09.2013
Authorised Capital : Rs. 2050.000 Millions
Issued, Subscribed & Paid-up Capital :Rs. 1621.975
Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1622.000 |
1622.000 |
1622.000 |
|
(b) Reserves & Surplus |
3193.700 |
3318.700 |
3125.000 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
4815.700 |
4940.700 |
4747.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
2772.500 |
3484.700 |
2713.800 |
|
(b) Deferred tax liabilities (Net) |
558.000 |
558.000 |
488.100 |
|
(c) Other long term liabilities |
130.600 |
166.000 |
279.000 |
|
(d) long-term provisions |
138.900 |
105.200 |
610.200 |
|
Total
Non-current Liabilities (3) |
3600.000 |
4313.900 |
4091.100 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1450.200 |
1826.400 |
1102.700 |
|
(b) Trade payables |
2406.800 |
1920.200 |
548.300 |
|
(c) Other current liabilities |
826.800 |
821.900 |
616.300 |
|
(d) Short-term provisions |
476.200 |
456.400 |
605.500 |
|
Total
Current Liabilities (4) |
5160.000 |
5024.900 |
2872.800 |
|
|
|
|
|
|
TOTAL |
13575.700 |
14279.500 |
11710.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
6178.000 |
4169.300 |
3449.700 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
327.000 |
2362.500 |
1893.200 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
76.700 |
76.500 |
75.800 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
295.300 |
553.400 |
862.900 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
6877.000 |
7161.700 |
6281.600 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
3269.300 |
3918.400 |
2990.300 |
|
(c) Trade receivables |
1556.200 |
1496.000 |
1409.500 |
|
(d) Cash and cash equivalents |
534.000 |
526.800 |
345.500 |
|
(e) Short-term loans and advances |
1325.500 |
1134.100 |
676.200 |
|
(f) Other current assets |
13.700 |
42.500 |
7.800 |
|
Total
Current Assets |
6698.700 |
7117.800 |
5429.300 |
|
|
|
|
|
|
TOTAL |
13575.700 |
14279.500 |
11710.900 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
Income |
15693.100 |
16181.800 |
15440.700 |
|
|
|
Other Income |
78.200 |
52.800 |
56.000 |
|
|
|
TOTAL |
15771.300 |
16234.600 |
15496.700 |
|
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
Cost of Materials Consumed |
9438.600 |
11126.600 |
9862.200 |
|
|
|
Other Manufacturing Expenses |
3468.100 |
3296.000 |
2755.200 |
|
|
|
Changes in inventories of finished goods, work-in-progress and Stock-in-Trade |
168.300 |
(787.000) |
(122.900) |
|
|
|
Employees benefits expense |
758.600 |
716.400 |
660.200 |
|
|
|
Other expenses |
674.900 |
626.200 |
663.000 |
|
|
|
TOTAL |
14508.500 |
14978.200 |
13817.700 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
1262.800 |
1256.400 |
1679.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
823.300 |
530.500 |
374.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
439.500 |
725.900 |
1304.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
564.500 |
424.400 |
396.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(125.000) |
301.500 |
908.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
107.800 |
202.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(125.000) |
193.700 |
705.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3293.100 |
3099.400 |
2488.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
0.000 |
0.000 |
81.100 |
|
|
|
Corporate Dividend Tax |
0.000 |
0.000 |
13.200 |
|
|
BALANCE CARRIED
TO THE B/S |
3168.100 |
3293.100 |
3099.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export at FOB value |
1085.400 |
1355.900 |
1151.400 |
|
|
TOTAL EARNINGS |
1085.400 |
1355.900 |
1151.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
790.400 |
936.000 |
1295.600 |
|
|
|
Components & Spares |
33.600 |
50.700 |
26.200 |
|
|
|
Capital Goods |
13.200 |
171.000 |
414.500 |
|
|
TOTAL IMPORTS |
837.200 |
1157.700 |
1736.300 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
(0.77) |
1.19 |
4.35 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(0.79)
|
1.19 |
4.55 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.80)
|
1.86 |
5.88 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.95)
|
2.55 |
9.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.03)
|
0.06 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.88
|
1.07 |
0.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.30
|
1.42 |
1.89 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
1622.000 |
1622.000 |
1622.000 |
|
Reserves & Surplus |
3125.000 |
3318.700 |
3193.700 |
|
Net
worth |
4747.000 |
4940.700 |
4815.700 |
|
|
|
|
|
|
long-term borrowings |
2713.800 |
3484.700 |
2772.500 |
|
Short term borrowings |
1102.700 |
1826.400 |
1450.200 |
|
Total
borrowings |
3816.500 |
5311.100 |
4222.700 |
|
Debt/Equity
ratio |
0.804 |
1.075 |
0.877 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
15440.700 |
16181.800 |
15693.100 |
|
|
|
4.800 |
(3.020) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
15440.700 |
16181.800 |
15693.100 |
|
Profit |
705.300 |
193.700 |
(125.000) |
|
|
4.57% |
1.20% |
(0.80%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
From Promoters (Interest Free) @ |
137.500 |
137.500 |
|
Other Loans and
Advances # |
|
|
|
Interest Free Sales Tax Loan |
626.400 |
688.100 |
|
|
|
|
|
Total |
763.900 |
825.600 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10432530 |
28/09/2013 * |
200,000,000.00 |
State Bank of Bikaner & Jaipur |
Commercial Network Branch, 239, P. D. Mello Road, Near GPO, Fort,
Mumbai - 400001, Maharashtra, India |
B86608924 |
|
2 |
10413511 |
28/09/2013 * |
200,000,000.00 |
State Bank of India |
The Arcade, 2nd Floor, World Trade Centre, Cuffe Parade, Mumbai -
400005, Maharashtra, India |
B86567369 |
|
3 |
10225887 |
20/08/2010 * |
1,500,000,000.00 |
Indian Bank |
Deccan Gymkhana Branch, 759/62, Prabhat Road, Pune - 411004, Maharashtra,
India |
A94006160 |
|
4 |
10222470 |
20/08/2010 * |
900,000,000.00 |
Bank of India |
Nagpur Corporate Banking Branch, S V Patel Marg, |
A93477800 |
|
5 |
10209393 |
20/08/2010 * |
1,000,000,000.00 |
IDBI Bank Limited |
IDBI Tower, 9th Floor, WTC Complex, Cuffe Parade, Mumbai - 400005,
Maharashtra, India |
A93440774 |
|
6 |
10112073 |
12/09/2008 * |
600,000,000.00 |
State Bank of India |
Industrial Finance Branch, 'The Arcade' 2nd Floor, World Trade Centre,
Cuffe Parade, Colaba, Mumbai - 400005, Maharashtra, India |
A45338423 |
|
7 |
90239709 |
28/09/2013 * |
6,993,300,000.00 |
State Bank of India |
The Arcade, 2nd Floor, World Trade Centre, Cuffe |
B87636999 |
|
8 |
90239530 |
22/07/2004 * |
43,600,000.00 |
IFCI Ltd |
Bank of Baroda Building, Parliamentary Street, New Delhi - 110001,
India |
- |
|
9 |
90239504 |
22/07/2004 * |
81,100,000.00 |
INDUSTRIAL FINANCE CORP. OF INDIA |
Bank of Baroda Building, Parliamentary Street, New Delhi - 110001,
India |
- |
|
10 |
90239492 |
28/03/1990 |
2,000,000.00 |
STATE BANK OF INDIA |
Commercial Branch, Bombay, Maharashtra, India |
- |
* Date of charge modification
CORPORATE
INFORMATION
Subject was
incorporated in 1984 and engaged in the business of manufacturing and sale of
Special Steel Rolled products.
FINANCE
During the financial
year, the net turnover is lower by about 3% as compared to corresponding
previous financial year. The Company has ended the financial year with a loss
after tax of Rs. 125.000 millions. After taking into account the brought
forward profit of Rs. 3293.100 millions, the Company has carried forward an
amount of Rs.3168.100 millions.
MARKET SCENARIO
The current market
scenario is not favorable to Steel Industry as well as Automobile and Auto
component sectors due to general slowdown in Indian and Global economy coupled
with policies of Government. However, is continuing to develop new high value
grades of alloy steel to cater the needs of domestic as well as international
markets.
OPERATIONS
i.
During the financial year:
a)
The total production for Direct Reduction Plant (I
+ II) was 118,030 MT as against 142,444 MT of the previous financial year.
b)
The total production of 269,152 MT in Steel Melt
Shop as against 302,532 MT of the previous financial year.
c)
The total production of Rolled products at BSM and
ASM was 273,019 MT as against 303,732 MT of the previous financial year.
(Previous year production includes outside conversion of 7,624 MT).
d)
The total production of Hot Metal / Pig Iron was
189,640 MT as against 205,089 MT of the previous financial year.
e)
The total production of Sinter Plant was 340,389 MT
as against 339,900 MT of the previous financial year.
f)
The total production of Blooming Mill was 30,206 MT
including semis. The production for the previous year nil as it was
commissioned in the financial year.
ii.
The power plant generated 1,601.03 Lacs kWh as
compared to 1,714.21 Lacs kWh of the previous financial year.
iii.
The total coal production at Belgaon Coal Block is
248,350 as against 159,905 MT of the previous financial year.
PROJECTS
Steel Plant:
The Company has
commissioned commercial production of Blooming Mill during the financial year.
Additionally, the Company is in the process of installation of Variable Reduction
Mill (VRM) which will give close dimension, tolerance and good surface finish.
Also, the Company is in process of installation of Bar Conditioning system.
These new projects
will add wider product range, value addition and more competitive products and
in particular, in achieving economy in the cost of production.
Also, the Company had installed Fume Extraction System in its Steel Melt
Shop area as a measure of reducing the pollution.
SUBSIDIARY
COMPANIES:
Sunflag Power
Limited: Requisite approvals are being sought and underway for implementation of
Hydro Power Project at Hanol Tuini in the state of Uttarakhand. Recent disaster
in the state of Uttarakhand may delay the progress of implementation of
Company’s Hydro Power Project at Hanol Tuini.
Sunflag Special
Steels Limited: The management is exploring the business opportunities for the Company.
Khappa Coal
Company Private Limited: The Company has initiated various activities well
in time and is striving harder to pave its way to success. The activities to be
initiated by the Company are almost over and different matters are pending with
various departments of Government of Maharashtra and Government of India. The
operations of the Khappa and Extension Coal Block will depend on delay in
execution of project approvals and clearances, for which regular follow up
action is being taken by the Company.
JOINT VENTURE
COMPANIES:
Madanpur (North)
Coal Company Private Limited: Earlier, the project was declared as 'No Go Area'
which was later withdrawn by the Ministry of Environment & Forest,
Government of India for the purpose of forest clearances. As such, various
approvals / clearances are being sought from the concerned authorities for
effective implementation of the Madanpur (North) Coal Project in the state of
Chhattisgarh.
C T Mining Private
Limited: The Ministry of Coal, Government of India vide its order dated 22nd
November 2012 de-allocated the Coal Block allocated to the Joint Venture
Company. The said joint venture company together with the promoter companies
viz.
M/s Sunflag Iron
& Steel Company Limited and M/s Rungta Mines Limited have separately filed
Writ Petition/s before the Hon’ble High Court of Jharkhand at Ranchi and got
stay order on 12th December 2012. The matter is now sub-judice before the
Hon’ble High Court of Jharkhand at Ranchi.
Gujarat State
Mining and Resources Corporation Limited: The management efforts are underway for
getting allocation of coal block for development of integrated coke oven plant
in the state of Gujarat.
MANAGEMENT DISCUSSION AND ANALYSIS
Subject had set up
a ‘state of the art’ integrated Steel plant at Warthi, Bhandara Road to produce
high quality Special Steel with manufacturing facilities like Sponge Iron
Plant, Mini Blast Furnace, Sinter plant, Captive Power Plant and Blooming Mill.
Sunflag Steel has
established itself as a major global force. With the modern complex pulsating
with world class technology, expert human resources and a commitment to excellence,
Sunflag Steel has become a reputed supplier in Flat Bars, Round Bars, Bright
Bars and Wire Rods of Alloy Steel, Spring Steel and Stainless Steel and
captured better position in these market segments. Sunflag Steel is also
embarking on an export thrust and is regularly supplying to various customers
in South East Asian, African, Middle East and South American countries.
Further, due to
implementation of Blooming Mill, Sunflag Steel can cater to foreign as well as
indigenous customers of their needs of Rolled Products for higher sections and
thus offering a better product mix. The Blooming Mill will yield better quality
of higher size rolled products and Bloom / Ingots due to better compression
ratio and more specifically used in the critical applications like crank shaft
quality and it can be supplied to Only Equipment Manufacturers (OEM).
GLOBAL ECONOMY
- Global economic prospects have not much
improved again and the road to recovery in the advanced economies will
remain bumpy.
- Though the financial market rally has been
helping economic recovery by improving funding conditions and supporting
confidence, but growth prospects appear broadly unchanged.
- In the euro area, better conditions for
periphery sovereigns are not yet passing through to companies and
households, because banks are still hobbled by poor profitability and low
capital, constraining the supply of credit.
- In advanced economies, real GDP is projected
to contract relative to 2012, by about ¼ percent of GDP. Japan, by
contrast, will see a fiscal and monetary-stimulus-driven rebound, with
real GDP growth reaching 1½ percent.
- Overall, the annual growth for advanced
economies in 2013 is no better than the outcome for 2012.
- There was a noticeable slowdown in the
emerging market and developing economies during 2012. With consumer demand
resilient, macroeconomic policy on hold, and exports reviving, most of the
economies in Asia and sub- Saharan Africa and many economies in Latin
America and the Commonwealth of Independent States are now seeing higher
growth.
- The economies in the Middle East and North
Africa continue to struggle with difficult internal transitions. And a
couple of economies in South America are facing high inflation and
increasing exchange market pressure.
INDIAN ECONOMY
Industrial growth
has remained subdued since July 2011 due to weak global demand, weak supply
linkages, high import costs and sluggish investment activities.
India is expected
to record 6.1 per cent Gross Domestic Product (GDP) growth in the current fiscal
2013-2014. The growth is expected to increase further to 6.7 per cent in
2014-2015, according to the World Bank’s latest India Development Update, a
bi-annual report on the Indian economy. While, Prime Minister’s Economic
Advisory Panel expects the economic growth to increase to 6.4 per cent in
2013-2014 from 5.0 per cent during 2012-2013 (as compared to 6.2 per cent in
2011-2012), on back of improvement in performance of agriculture and
manufacturing sectors. However, the growth rate in the first three quarters of
the current fiscal is 5.0 per cent.
Slowdown in Indian
economy is largely due to global factors, as also because of domestic factors
like tightening of monetary policy, high inflation and slower investment and
industrial activities.
The major points
of concern during the fiscal 2012-2013 are as follows:
- Overall growth in the Index of Industrial
Production (IIP) was 0.9 per cent as compared to 3.5 per cent in 2011-2012
- Eight core industries (comprising of crude
oil, petroleum refinery products, coal, electricity, cement, steel,
natural gas and fertilizers) registered 2.6 per cent growth as compared to
5.2 per cent during 2011-2012
- Growth in the manufacturing sector
disappointed coming in at 1.0 per cent in FY2013, a 15 year low. It has
decelerated for the third straight year from 11.3 per cent in FY2010.
INDIAN STEEL,
AUTOMOBILE AND AUTO COMPONENT INDUSTRY
In India, the
Steel industry plays a significant role in the economic growth. India has
acquired a central position in the global steel map with its giant steel mills,
acquisition of global scale capacities players, continuous modernisation and
up-gradation of old plants, improving energy efficiency and backward
integration into global raw material sources. However, the subdued growth of
core industries has remained a drag on industrial production, more
particularly, the Policy uncertainties in area such as iron ore and coal have
adversely affected the output of Steel and Power industries.
Currently, ranked
the world’s fourth largest crude steel capacity, India is expected to become
second largest producer of crude steel in the world by 2015-2016. India is also
the world’s largest producer of sponge iron with a host of coal based units
located in its mineral rich states.
Indian crude steel
production is estimated to grow at a compounded annual growth rate (CAGR) of
around 10.0 percent whereas the finished steel consumption is estimated to grow
at a CAGR of around 12.0 per cent during financial years 2012-2014.
The industry has
faced with stiff challenges due to rising inflationary pressures and
deteriorating global growth conditions. The multiple hikes in interest rates by
the central bank also impacted the industry’s growth in rate sensitive key user
industries.
Domestic automakers
continued with their poor run in April - May 2013 also, broadly on the expected
line, due to slowdown in economic activity and negative consumer sentiments.
The slowdown continues to be prominent in the medium and heavy commercial
vehicle (MHCV), passenger car and two-wheeler segments. The utility vehicle
(UV) and light commercial vehicle (LCV) segments, which so far had remained
insulated from the slowdown, too have started witnessing demand pressures.
Going ahead, it is expected that volume growth to remain sluggish in 1HFY2014
due to high inventory levels and weak consumer sentiments. Nonetheless, they
expect volumes to recover in 2HFY2014 on the back of further easing of interest
rates, festival demand and also due to favorable base effect.
MATERIAL DEVELOPMENT
Sunflag Steel was
not able to maintain its profitability mainly due to marginal rise in selling
prices of its products versus abnormal rise in the cost of inputs such as iron
ore, pig iron and coke and largely due to overall decelerated global and Indian
economic growth.
In order to
achieve effective cost reduction and improvement in productivity, activity of
total productive maintenance (TPM) continued to be implemented by the Company
during the year.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2013 (Rs. in
millions) |
31.03.2012 (Rs. in
millions) |
|
i. Contingent liabilities |
|
|
|
a) Unexpired Letter of Credit |
1080.100 |
674.000 |
|
b) Guarantees issued by Company's Bankers on behalf of the Company |
269.200 |
266.600 |
|
c) Bonds / Under Takings given by the Company under Duty Exemption
Scheme to the Custom Authorities |
259.800 |
278.200 |
|
d) Bills Discounted |
640.000 |
336.700 |
|
e) Excise Duty & Custom Duty against which Company has preferred
an Appeal |
10.000 |
10.000 |
|
f) Income Tax Liability - Disputed but paid |
107.400 |
132.400 |
|
g) Income Tax Liability - Disputed but not paid |
73.900 |
0.000 |
|
h) Corporate Guarantee issued to Banks on behalf of Subsidiaries |
40.000 |
40.000 |
|
|
|
|
|
ii. Commitments |
|
|
|
Estimated amount of contracts remaining to be executed on capital
account and not provided for :-
Tangible Assets |
50.700 |
376.500 |
FIXED ASSETS
Ø Freehold Land
Ø Leasehold Land
Ø Buildings
- Factory Building
- Non – Factory Building
- Office Building
- Township
- Welfare Building
- Roads
- Boundary wall and fencing
Ø Railway Siding
Ø Plant and
Machinery
Ø Furniture and
Fixture
Ø Heavy Vehicles
Ø Light Vehicles
Ø Development of
Mines
UNAUDITED
FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED 31ST DECEMBER, 2013
(Rs.
in millions)
|
Sr No. |
Particulars (PART
I) |
Quarter
Ended |
Nine
Months Ended |
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net
sales/income from operations (Net of excise duty) |
4099.800 |
382.100 |
11600.400 |
|
|
(b) Other operating income |
-- |
-- |
-- |
|
|
Total income from
operations (net) |
4099.800 |
382.100 |
11600.400 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of
materials consumed |
2354.000 |
2462.500 |
6892.600 |
|
|
(b) Purchases of stock-in-trade |
-- |
-- |
-- |
|
|
(c) Changes
in inventories of finished goods and work-in-progress |
(18.300) |
(171.100) |
(105.200) |
|
|
(d) Employee
benefits expense |
180.200 |
181.200 |
551.500 |
|
|
(e)
Depreciation and amortisation expense |
162.700 |
148.500 |
459.800 |
|
|
(f) Other
expenses |
1161.400 |
1018.400 |
3166.000 |
|
|
Total expenses |
3840.000 |
3639.500 |
10964.700 |
|
3 |
Profit (Loss) from
operations before other income, finance costs and exceptional items (1-2) |
259.800 |
181.500 |
635.700 |
|
4 |
Other income |
3.500 |
12.100 |
34.000 |
|
5 |
Profit/(Loss) from ordinary
activities before finance costs and exceptional items (3*4) |
263.300 |
193.600 |
669.700 |
|
6 |
Finance costs |
198.000 |
167.200 |
538.000 |
|
7 |
Profit (Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
65.300 |
26.400 |
131.700 |
|
8 |
Exceptional items |
-- |
-- |
-- |
|
9 |
Profit / (Loss)
from ordinary activities before tax (7-8) |
65.300 |
26.400 |
131.700 |
|
10 |
Tax expense |
(13.100) |
(5.300) |
(26.400) |
|
11 |
Net Profit/[Loss
after tax (9-10) |
52.200 |
21.100 |
105.300 |
|
12 |
Paid-up equity share capital (Face Value Rs. 10/-) |
1622.000 |
1622.000 |
1622.000 |
|
13 |
Reserves
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
|
|
|
|
14 |
Basic
and Diluted Earning per share (Rs.) |
0.32 |
0.13 |
0.65 |
|
|
PART II |
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
|
Public Shareholding |
|
|
|
|
|
- Number of Shares |
737781027 |
737781027 |
737781027 |
|
|
- Percentage of Shareholding |
45.49% |
45.49% |
45.49% |
|
|
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
|
- Percentage of shares (as a percentage of the total shareholding of
Promoters and Promoter Group) |
-- |
-- |
-- |
|
|
- Percentage of shares (as a percentage of the total capital of the
Company) |
-- |
-- |
-- |
|
|
b) Non-encumbered |
|
|
|
|
|
- Number of Shares |
88416476 |
88416476 |
88416476 |
|
|
- Percentage of shares (as a percentage of the total shareholding of
Promoters and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of shares (as a percentage of the total capital of the
Company) |
54.51% |
54.51% |
54.51% |
NOTE:
- After reviewed by the Audit Committee, the
above financial results were approved by the Board of Directors at their
meeting held on 28Ih January 2014.
- The above Financial results are subject to
'Limited Review' by the Statutory Auditors of the Company.
- The capital employed as on 31"' December
2013 is Rs. 8890.700
millions
- As there are no taxable profits, the Company
has provided current tax expenses as per provisions under MAT
- As of now, there is no deferred tax liability.
However, the same will be reviewed and liability, if any, will be provided
before the end of the financial year.
- The Company is primarily engaged in the business
of rolled products and grouped as single segment as per the Accounting
Standard (AS) - 17 dealing with segment report issued by ICAI.
- During the quarter. 4 Investors' complaints
were received and all the complaints were attended to by the Company I Share
Transfer Agent. At the end of the quarter, no complaints were pending.
- The figures of previous periods have been
re-grouped I re-arranged, wherever necessary
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.49 |
|
|
1 |
Rs.99.77 |
|
Euro |
1 |
Rs.83.67 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
49 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.